White Energy Co. Ltd. said Jan. 10 that the Singapore International Commercial Court ruled in favor of its BCBC Singapore Pte. Ltd. and Binderless Coal Briquetting Co. Pty. Ltd. subsidiaries in its dispute over the KSC coal joint venture in Indonesia with PT Bayan Resources Tbk.
In July 2017, the court declared that Bayan Resources had violated its coal supply obligation and further repudiated the joint venture by wrongfully issuing a termination notice. Bayan Resources lodged an appeal in August 2017, which the appeals court dismissed.
The court found that the two White Energy units had the financial ability to fund the KSC joint venture until the completion of commissioning and testing at the Tabang plant or until June 2012. In August 2018, the Singapore Court of Appeal, as part of its dismissal of Bayan's appeal over the dispute, remitted to the commercial court a question over the units' ability to fund the joint venture.
In the wake of the commercial court's decision, a third tranche of legal proceedings will be held in which White Energy will seek damages and costs.
White Energy had invested more than US$110 million in the Tabang coal project in Indonesia up until 2012 when Bayan Resources repudiated the joint venture.